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THE MINISTRIES

INTER-MINISTERIAL CIRCULAR No. 77/1997/TTLT-BTC-BTM-BNV-TCHQ OF NOVEMBER 01, 1997 ON AFFIXING TAX STAMPS TO IMPORT GOODS

Pursuant to Decree No. 35-CP of April 25, 1994 of the Government on the reorganization of the steering of the market management and the fight against speculation and smuggling and Decision No. 96-TTg of February 18, 1995 of the Prime Minister issuing the Regulation on the coordination of activities among the State management agencies in the management of the market and the fight against smuggling and other illicit trading acts;

Proceeding from Point 4, Directive No. 853/1997/CT-TTg of October 11, 1997 of the Prime Minister on the fight against smuggling in the new situation, assigning the Ministry of Finance to coordinate with the concerned ministries and branches in applying soon the stamp-affixing measure to manage a number of key goods items;

Proceeding from Official Dispatch No. 5422/KTTH of October 28, 1997 of the Office of the Government notifying Deputy Prime Minister Nguyen Tan Dung’s direction on affixing tax stamps to import goods ;

The Ministry of Finance, the Ministry of Trade, the Ministry of the Interior and the General Department of Customs jointly provide the following guidance:

A. IMPORT GOODS SUBJECT TO TAX STAMP AFFIXTURE

1. As from December 1, 1997, bottled alcohol (including alcohol in jars and flasks), assembled bicycles and assorted electric fans imported by business organizations and individuals or circulated on the market, including goods being left in stock, displayed for sale or transported en route must be sticked with import goods tax stamps as prescribed.

1.1. The sticking of import goods tax stamps on imported bottled alcohol, assembled bicycles and electric fans shall be done by the customs offices at the place of goods inspection and must be finished before the customs procedures are completed. The organizations and individuals engaged in the import business shall have to create favorable conditions for the customs office to safely and smoothly complete the stamping procedures in accordance with the provisions of this Circular.

1.2. Organizations and individuals trading in imported bottled alcohol, assembled bicycles and electric fans which are still in stock shall have to inventory them, fill and send the declaration forms to the market control agency and the tax agency that directly manage them before December 1st, 1997 so as to have their goods sticked with import duty stamps according to the following stipulations:

- State enterprises and foreign invested enterprises shall submit their declaration forms to the taxation departments of the provinces or cities directly under the Central Government.

- Limited liability companies, private enterprises, joint-stock companies and cooperatives shall submit their declaration forms to the tax bureaus of the districts or provincial cities.

- Individual business households shall submit their declaration forms to the People’s Committees of the wards, communes or district towns.

The market control agency and the tax agency shall assign their cadres to be constantly present at the places of receipt of declaration forms to promptly receive the declaration forms submitted by business units.

The time limit for submission of declaration forms starts from 8:00 hrs on November 15, 1997 and the stamping of goods left in stock must be finished not later than 16:00 hrs on November 30, 1997.

The market control agency shall have to check the data in the declaration forms against the quantities of goods actually left in stock. The tax agency shall be responsible for the stamp affixture. If the declared quantity of goods is lower than the real one, only the declared goods shall be affixed with stamps. The quantity of undeclared goods shall be written down in a record and be confiscated. If the quantity of declared goods is higher than the quantity of goods actually in stock, a written report shall be made to determine the real quantity and an administrative sanction shall be imposed thereon. Trading organizations and individuals shall inventory and declare their goods by themselves and request the market control agency to check and the tax agency to stamp their goods without affecting the business operations.

1.3. Imported bottled alcohol, assembled bicycles and electric fans which are confiscated must be stamped. The agency deciding the confiscation must notify the tax agency of the quantity of confiscated goods so that the latter can affix stamps to such goods before selling them on the domestic market.

2. Imported bottled alcohol, assembled bicycles and electric fans shall not be stamped in the following cases:

2.1. Goods imported by organizations and individuals that are eligible for the exemption of import tax and special consumption tax (if any) in service of their daily life’s needs, if they wish to sell such goods, they must make a declaration to the customs agency for payment of import tax and special consumption tax (if any) and such goods must be affixed with tax stamps before sale.

2.2. Goods on sale at duty-free shops.

2.3. Goods on transit, or brought by the customs office from the first entry border gate to the place of inspection. These goods must be accompanied with a decision of the head of the customs office and must be lead-sealed up by the customs office or escorted by a customs officer.

3. To distinguish bottled alcohol, assembled bicycles and electric fans made in the country from imported ones, the organizations and individuals permitted to import materials and raw materials, components and details for the production and/or assembly of finished products shall have to strictly abide by Decision No. 636/TN-QLCL of July 26, 1996 of the Minister of Trade on the Regulation on the product labels of goods circulated on the market.

B. IMPORT GOODS TAX STAMPS AND STAMPING

1. Stamping:

The stamping of imported bottled alcohol, assembled bicycles and electric fans is stipulated as follows:

1.1. Bottled alcohol (including alcohol in jars and flasks): the stamp shall be sticked or the bottle cap.

1.2. Assembled bicycles: the stamp shall be sticked on the upper part of the down tube, about 0.5 cm away from the joint edge.

1.3. Electric fans: the stamp shall be sticked onto the cover of the fan body . For electric fans in the square shape (like ventilators) the stamp shall be sticked onto the upper left corner .

2. Distribution and management of stamps:

2.1. Import goods tax stamps shall be uniformly distributed by the Ministry of Finance. The General Department of Taxation shall be responsible for printing and distributing promptly and fully import goods tax stamps to the customs service for organizing the stamping as prescribed.

All cases of printing, distributing, selling or using fake stamps shall be handled according to law.

2.2. Import goods tax stamps shall be managed and used according to the Finance Ministry’s Decision No. 529-TC/TCT OF December 22, 1992 on the management of tax-related stamps and seals and Decision No. 839a-TC/QD/TCT of October 31, 1997 on the issue, printing, management and use of import goods tax stamps The delivery of stamps to business organizations and individuals for stamping goods on their own shall be strictly forbidden.

2.3. The business organizations and individuals that import goods according to the provision in Point 1.1, Part A of this Circular shall pay a stamping cost which shall be specified by the Ministry of Finance.

C. HANDLING OF VIOLATIONS AND COMMENDATION:

1. Handling of violations:

1.1. As from December 1, 1997 all imported bottled alcohol, assembled bicycles and electric fans circulated on the market, including goods in stock, on sale, being transported en route without stamps prescribed shall be considered as smuggled goods and confiscated.

1.2. Organizations and individuals that violate the provisions on stamping or abet other organizations and individuals in selling or legalizing unstamped imported bottled alcohol, assembled bicycles and electric fans shall be handled in accordance with law.

1.3. The agencies assuming the inspection responsibility that discover violations shall have the competence to handle them.

2. Commendation:

Any organization or individual that discovers or assists the supervision and control force in detecting and seizing unstamped bottled alcohol, assembled bicycles and electric fans shall be commended according to current regulations.

3. Dealing with confiscated goods:

Imported bottled alcohol, assembled bicycles and electric fans in violation of the stamping regulations shall be confiscated. The management and use of confiscated goods shall comply with the stipulations of the Government and the guidance of the Ministry of Finance.

D. ORGANIZATION OF IMPLEMENTATION

1. The presidents of the People’s Committees of the provinces and cities directly under the Central Government shall direct the stamping of goods in stock; supervise the circulation of the goods subject to tax stamp affixture in their localities.

2. The General Department of Customs shall guide and direct the stamping of goods according to the provisions in this Circular.

3. The Ministry of Finance, the Ministry of Trade and the Ministry of the Interior shall have to coordinate with the People’s Committees of the provinces and cities directly under the Central Government in guiding and directing the implementation of this Circular.

4. The Ministry of Trade (the Market Control Department) shall assume the prime responsibility and coordinate with the Ministry of Finance (the General Department of Taxation) and the Ministry of the Interior (the General Department of the People’s Police) in checking and supervising imported goods subject to tax stamp affixture circulated on the domestic market.

5. In the course of implementation, the branches and localities shall monitor, sum up and report their opinions to the Ministry of Finance and the concerned ministries so as to draw experiences for the stamping of other goods items.

6. This Circular takes effect 15 days after its signing.

For the Minister of TradeVice Minister

DO NHU DINH

For the Minister of Finance

Vice Minister

VU MONG GIAO

For the General Director of the General Department of Customs

Deputy General Director

NGUYEN DUC MINH

For the Minister of the Interior

Vice Minister

VO THAI HOA